Guidance on social investment by charities

The Charity Commission (England and Wales) has produced updated guidance to coincide with a new social investment power for charities. The first phase of the Charities (Protection and Social Investment) Act 2016 came into force from 31st July, including this and some powers for the Charity Commission.

As outlined in a short piece by solicitors Bates Wells and Braithwaite,

The power confirms charities’ ability to make social investments. According to the Act, “social investment” means investing resources with a view to both directly furthering the charity’s purposes and achieving a financial return for the charity. The power will be particularly relevant for charities wishing to make social investments, as well as for potential recipients of social investment from charities.

The official news release gives more background on the interim guidance which supplements the existing ‘Charities and investment matters’ (CC14) and is available from the same page – although only in html (web) format (old versions are available in pdf).

Charity Finance Group has a useful article with “ten things you should know about the new power to make social investments”, to help busy trustees and charity finance teams.